Classic Signs Agreement to be Acquired by Newly Established Entity
Owned by the Company’s Current Lenders that Provides Strong Foundation
for the Future

February 14, 2014 07:20 PM Eastern Standard Time

LOS ANGELES--(BUSINESS WIRE)--Classic Party Rentals, the nation’s leading event rental and services
provider, today announced that it has signed an agreement through which
substantially all of the business of Event Rentals, Inc. and its
subsidiaries, d/b/a Classic Party Rentals, would be acquired by a newly
established entity owned by the Company’s current lenders.

“We are very pleased to have reached this sale transaction agreement
with our lenders, which we expect will help us more strongly position
our company for future growth,” said Jeff Black, Classic Party Rental’s
President and Chief Executive Officer. “We believe this agreement
demonstrates the confidence that our lenders have in our strategic
vision for Classic to continue leading the industry in providing
innovative and flawlessly executed event services, and in our
leadership’s ability to achieve it. Importantly, our lenders have a deep
understanding of our business and are fully supportive of the
initiatives critical to our business that we intend to implement in the
short and long term. We anticipate that this sale transaction will
enable us to put our financial challenges behind us and move forward
with a brighter future.

“We intend to accelerate and increase our investment in the business and
our people to refresh and grow our inventory, which will expand our
ability to deliver even more creative and elaborate events. The terms of
our financing commitment provide us with the ability to immediately
invest in new inventory ahead of the busy spring and summer event
seasons. We look forward to creating and capturing new opportunities for
our business, and better serving our customers in the future.”

As previously announced, to facilitate the sale transaction, Classic
Party Rentals on February 13 filed voluntary petitions for relief under
chapter 11 of the United States Bankruptcy Code. The Company fully
expects to operate its overall business as usual and uphold its
commitments to stakeholder during the chapter 11 process.

Classic Party Rentals has a commitment for $20 million in
debtor-in-possession (“DIP”) financing, which the Company anticipates to
be more than sufficient funding during the sale transaction process.
Under the terms of the financing agreement, the Company expects to be
able to invest an incremental $5 million in new inventory in addition to
its ordinary course inventory purchases.

As part of the sale transaction through chapter 11, the agreement is
subject to a court-supervised process that will solicit additional
offers for Classic Party Rentals to ensure the Company achieves the
highest and best offer for its business. Classic Party Rentals will
evaluate any competing offers it may receive, and any competing offer
accepted would only improve upon the current agreement with lenders.

The transaction is subject to the approval of the Bankruptcy Court and
the satisfaction of customary closing conditions. The sale transaction
is expected to be completed by the end of May, 2014. Upon completion,
Classic Party Rentals will be financially and operationally stronger –
with more extensive product and service capabilities and outstanding
customer service.

Classic Party Rental's vendors and clients can access additional
information about the Company's sale transaction and chapter 11 filing
on its dedicated website, www.ClassicTransaction.com.
The Company also has established a vendor and customer support center,
which may be reached at 877-759-8814 (toll-free), 424-236-7261 (outside
of the U.S. or Canada).

Classic Party Rentals is advised in this transaction by Jefferies LLC,
FTI Consulting, and White & Case LLP.

About Classic Party Rentals

Classic Party Rentals is the nation’s largest full-service event rental
company with over 30 locations nationwide. The company services most
major markets including Los Angeles, Chicago, Dallas, New York and Miami
by providing china, glassware, flatware, specialty linen, lounge
furniture, lighting, heating, flooring and kitchen and catering
equipment. Classic is also the leading nationwide provider of tents and
clearspan structures under the brand, Classic Tents as well as providing
multi-location services within the brand Classic Event Solutions. In
addition to providing event rentals, Classic offers sales support and
product and event management for more than 150,000 events per year
including major sporting events, brand promotion, corporate events,
celebrity weddings, charity events and private social events. For more
information, please visit www.ClassicPartyRentals.com.